Prepared By-

Property Club India

Guide for NRI investing in

Indian Real Estate

Introduction

Indian Real Estate Market is witnessing

rising trend of investments by NRIs since the last

few months. The Indian rupee has depreciated

nearly 18-20 percent in the last two year and it

has been a matter of concern for most segments.

But the NRI community is keen to make the most

of this development to make investments in the

real estate.

Estimated to rise queries from NRI by 35 per cent

against 15 per cent during the previous year

Most part of NRI investment originates from USA,

Singapore, Dubai, Australia, Middle East and

European countries.

South India is chosen to be top investment

destination majorly, Banaglore ranked to be first

followed by Chennai, Hyderabad, Coimbatore and

Vishakhapatnam.

Trend today

As per Foreign Exchange Management Act, an Indian citizens residing outside

India are permitted to buy any immovable property in India other than agricultural

land, plantation land or a farm house

He can purchase number of properties as RBI has not imposed any restriction on

it.

To earn return on investment made an NRI can rent his property and rental

income can be converted into required foreign currency.

The rental income derived by a NRI deduction is available in respect of actual

payment of house tax as also a special 30 per cent deduction is available towards

maintenance, repairs and collection charges of the property

An NRI can also transfer or sell his property in India. It is also to be noted that the

sale proceeds of property inherited from a NRI exceeding one million USD can be

remitted abroad in one calendar year

Investment Policy for NRI in India

NRIs can also avail easy home loan option from

various financial institutes

As per RBI guidelines, financial institutions are

allowed to finance about 80% of the total amount

while the rest is to be borne by the NRI borrower

The remittance of the down payment amount

should be done through normal banking channels

such as NRO/NRE account in India

The repayment of the principal amount, as well

as the calculated interest should also be from the

same channel

Investment Policy for NRI in India